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OSullivan Corp. purchased 7 5 % of the outstanding shares of Rabb Ltd . on January 1 , Year 3 , at a cost of
OSullivan Corp. purchased of the outstanding shares of Rabb Ltd on January Year at a cost of $ Noncontrolling interest was valued at $ by an independent business valuator at the date of acquisition. On that date, Rabb had common shares of $ and retained earnings of $ Fair values were equal to carrying amounts for all the net assets except the following:Carrying AmountFair ValueInventory$$EquipmentSoftwareTap the table to full screenThe equipment had an estimated remaining useful life of six years on January Year and the software was to be amortized over ten years. OSullivan uses the cost method to account for its investment. The testing for impairment at December Year yielded the following fair values:Software$GoodwillThe impairment loss on these assets occurred entirely in Year Amortization expense is grouped with administrative expenses, and impairment losses are grouped with miscellaneous expenses. The parents share of the goodwill noted above is $The following are the financial statements of OSullivan Corp. and its subsidiary Rabb Ltd for Year :BALANCE SHEETSAt December Year OSullivan Corp.Rabb LtdCash$$Accounts receivableNote receivableInventoryEquipment, netLandInvestment in Rabb$$Bank indebtedness$$Accounts payableNotes payableCommon sharesRetained earnings$$Tap the table to full screenSTATEMENTS OF RETAINED EARNINGSYear ended December Year OSullivan Corp.Rabb LtdRetained earnings, January Year $$Net incomeDividendsRetained earnings, December Year $$Tap the table to full screenINCOME STATEMENTSFor the year ended December Year OSullivan Corp.Rabb LtdSales$$Investment incomeCost of salesAdministrative expensesMiscellaneous expensesIncome taxesNet income$$Tap the table to full screenAdditional InformationThe notes payable are intercompany.Required:aPrepare the Year consolidated financial statements.Input all values as positive numbers. Leave no cells blank be certain to enter wherever required. Round your intermediate computations to nearest whole dollar value.Omit $ sign in your response.OSullivan Corp.Statement of Consolidated Retained EarningsYear ended December Year Click to selectBalance December Balance January $Click to selectNet incomeNet lossClick to selectAdd: DividendsLess: DividendsClick to selectBalance January Balance December $Tap the table to full screenbCalculate goodwill impairment loss and noncontrolling interest on the consolidated income statement for the year ended December Year under the identifiable net assets method.Omit $ sign in your response.Goodwill impairment loss$NCI identifiable net assets methodTap the table to full screencThis part of the question is
tableBank indebtedness,,$$not part of your Connect assignment
OSullhan Corp purchased of the outstanding shares of Rabb Lid. on January Year at a cost of $ Noncontrclling Interest was valued at $ by an independent bushess valuator at the date of acquisition. On that date, Rabb had common shares of $ and retained earnings of $ Fair values were equal to carryhg amounts for all the net assets except the following:
tableCarrying,Anount,Fair ValueImventery$$ Prepare consolidated income
Statement for year
Statement of consolidated retain earnings
Consolidated balance sheet at year
Calculate goodwill impairment loss and nci on consolidated income statemdntent for the year ended under the net assets method.
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